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9 . The current spot exchange rate between the dollar and the pound is 1 . 2 2 $ / . Inflation over the next

9. The current spot exchange rate between the dollar and the pound is 1.22 $/. Inflation over the next year is expected to be 8.11% in the US and 1-year Treasury debt has a 4.2% yield. Inflation over the next year is expected to be 9.9% in the UK and the 1-year Gilt debt (UK sovereign debt) has a 4.9% yield. What should the forward rate if the 1-year treasury yield changed to the following:
a.3.51%
b.4.59%
c.4.98%
d.5.44%
e.5.87%

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